Britain freezes Malawi aid, chides Mutharika

Last month, the United States approved a $350 million grant
for Malawi's dilapidated electricity network that had been
delayed because of concerns about a law preventing gay marriages
and another that lets the government ban newspapers.

The DfID statement also said International Development
Secretary Andrew Mitchell had written to Mutharika to express
his concerns about corruption and government accountability.

Landlocked Malawi has enjoyed an economic boom in the last
five years with the economy expanding at an average of seven
percent a year and inflation falling to single digits.

However, a donor squeeze and question marks over the future
of tobacco exports, which account for 70 percent of foreign
exchange earnings, could hit growth and put the currency, the
kwacha MWK=, under pressure.
(Reporting by Mabvuto Banda, Editing by Ed Cropley/Maria
Golovnina)